Annuity Plan: You can enjoy pension for life with annuity plan, know the whole thing here – benefits of annuity plan you can enjoy pension life long see detail here
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Whereas, in deferred annuity plan, the payment to you is postponed for 5-15 years ahead of your investment. In this you get money when you really need it. Generally this phase starts after retirement. In this, you can decide after how many years you want the return by investing your money at the current interest rate. Yes, do keep in mind that you cannot get your principal amount back after purchasing an annuity product. So, keep some money for any emergency. Experts say that one should buy annual annuity only so that better returns can be achieved.
mutual fund or index fund
There is also a variable method of annuity in which the policyholder gets many such investment options which are linked to the stock market. This can be a good option for those who are ready to take some risk on the investment amount to gain long term returns. However, it is more expensive than Mutual Fund or Index Fund. Before considering a variable annuity, assess your investment objective, risk appetite and financial position. Many experts say that if you have any other source of income after retirement, then only you should go ahead with investing in it. This is because the movement of the stock market also affects the investment made in it. However, it is also considered useful to combat inflation.
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